Help me answer the following questions correctly.,,,
Reserve Requirement = 20% 1. The Fed buys $550 million in bonds and deposits the funds at UMASS Bank of Students. What is the value of required reserves? .How much can the bank lend out (or in other words, what is the value of excess reserves)? 2. UMASS Bank of Students loans out the entire amount of excess reserves from problem I above to a student, C. Ash. C. Ash, takes this money and deposits it at Wells Fargo Bank. . What is the value of required reserves? .How much can the bank lend out (or in other words, what is the value of excess reserves)? 3. Wells Fargo Bank loans out the entire amount of excess reserves from problem 2 above to Acme Welding Supply. Acme takes the money and deposits it at Bank of America. "What is the value of required reserves? .How much can the bank lend out (or in other words, what is the value of excess reserves)? 4. Bank of America loans out the entire amount of excess reserves from problem 3 above to R. Cheney. Mr. Cheney deposits the money in Citibank. How much in loans (total - this far) has been made based on the initial deposit of $550? .In the end, when all of the money is lent out, what will be the final impact on the money supply? It will. increase/decrease/stay the same by how much .If the Fed changed the required reserve ratio to 10%, how would that impact the money supply? Would this be expansionary or contractionary monetary policy?6] Two inspectors carry out property valuations for an estate agency. Over a particular week they each go out to similar properties. The table below shows their valuations (in films}: A 102 98 93 86 92 94 89 9? B 35 33 92 95 9S 9'? 94 92 91 (a) Make an informative plot of these data. (b) Comment on an assumption of equal variance for the two underlying populations. (c) With the equal variance assumption of {b}, calculate a 95% condence interval for this common variance. (d) Calculate a 95% confidence interval for the mean difference between the valuations by A and B, and comment briey on the result. The estate agency employing the inspectors decides to test their valuations by sending them each to the same set of eight houses, independently and without knowledge that the other is going. The resulting valuations (in 0s} follow: Properly l 2 3 4 5 E 7' 3 A 94 93 102 132 113 121 106 123 B 92 96 111 129 111 122 101 113 (a) Make an informative plot of these data. (b) Calculate a 90% condence interval for the mean difference between valuations by A and B, and comment briey on the result. 1/2 (20 points) Suppose a rm has production function f(:1:1,:172) : (min{3:1:1, 2172]) , and the price of each input is $1. (a) If 2:2 is xed in the short run, nd the rm's short-run cost function 65(y, 3:2). (b) Find the rm's long-run cost function C(y) (c) Find the rm's short-run supply function 35(19, 332) f d) Find the rm's longrun supply function S(p). A student has said: "If you want to find the variance of X = B(s)+ B(1), where s
0 can be expressed as i + + 2min(4 . 12). (2] [Total 6](i) Calculate Angga and dings independently, assuming AM92 Ultimate mortality and 6% pa interest. [5] (ii) State the assumptions underlying the approximations on which your values calculated in part (i) are based. [2] (iii) Verify that the usual premium conversion relationship holds approximately between these two functions. [2] [Total 9]
